'Golden Ruble': Russian Think-Tank Proposes Stablecoin To Overcome Western Sanctions

Russian think tank VEB.RF has suggested that introducing a gold-backed cryptocurrency is among the best ways to ensure the stability of international financial transactions that fuel trade relations between countries in light of western sanctions.

While it is not clear if the proposed coin will be convertible to the precious metal – a practice long abandoned by most fiat monies -, the VEB.RF noted that the golden ruble would be specifically designed for international trade and not intra-state use. Furthermore, it should be tradable by third countries without Russian involvement.

The think tank stressed that current challenges require Russia to build qualitatively new financial and monetary systems that are unlike existing ones. VEB.RF recalled that Iran has been successfully subverting US sanctions using cryptocurrencies for foreign trade. The researchers added that existing digital currencies are no match to fiat ones, but are still preferable as a payment method despite high volatility.

As part of its analysis, the VEB.RF reviewed trading options in national currencies, gold, barter and clearing transactions, but found a gold-bound digital token to be one of the most appealing.

The need to find new ways to trade comes in light of western sanctions against Russia over Moscow's decision to launch a special military operation in Ukraine. The sanctions disrupted financial ties with foreign countries and, as a result, trade and logistic routes. While some global institutions continue their operations with Russian banks not affected by sanctions, many others refuse to deal with any, fearing secondary sanctions by the US prompted by indirect rule-breaking in the chain of transactions.